Structural Equation Model for analysing critical risks associated with facilities management outsourcing and its impacts on firm performance

Dubem Isaac Ikediashi, Stephen Olubodunwa Ogunlana, Godfrey Udo

    Research output: Contribution to journalArticlepeer-review

    9 Citations (Scopus)
    1044 Downloads (Pure)

    Abstract

    Purpose – This study aimed to develop and empirically test a structural equation model for investigating risk factors associated with outsourcing of facilities management (FM) services and its impact on firm performance.
    Design/methodology/approach – Using data derived from an earlier study, a conceptual model was hypothesized and empirically tested to clarify causal relationships between risk variables and how they influence firm performance.
    Findings – Supported by empirical evidence, the study established that only vendor risk variables have marginal impact on firm performance. There were however significant positive relationship between vendor risks factors and relationship risk factors, client based factors and relationship risk factors, client based risks and vendor related risks, and contract risks factors and relationship risk.
    Practical implications – The final structural equation model has revealed key risk components that would require standard mitigation measures in order to achieve outsourcing success in the FM sector. It is a sector that is thriving in Nigeria and requires every effort to make it an international recognised market.
    Originality/value – This paper provides a greater understanding of the interactions between key elements of outsourcing risks associated with facilities management provision as well as the degree of relationship between them.
    Original languageEnglish
    Pages (from-to)323-338
    Number of pages16
    JournalJournal of Facilities Management
    Volume11
    Issue number4
    DOIs
    Publication statusPublished - Nov 2013

    Keywords

    • Outsourcing
    • Structural equation modeling
    • Risks
    • Facilities
    • Nigeria

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